THE OTTAPALAM SERVICE CO-OPERATIVE BANK LTD. PALAKKAD, REPRESENTED BY ITS SECRETARY, SMT. LATHA N. vs. ADDITIONAL /JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX /INCOME TAX OFFICER,

WP(C)/2286/2023HC KeralaKLHC01005644202324 January 2023Author: HONOURABLE MR. JUSTICE T.R.RAVI4 pages
AI SummaryRemanded

What were the facts?

The petitioner, The Ottapalam Service Co-operative Bank Ltd., is a Primary Agricultural Credit Society registered under the Kerala Co-operative Societies Act, 1969. The Assessing Officer passed an order (Ext.P1) rejecting the petitioner's claim for deduction under Section 80P of the Income Tax Act. The rejection was based on the ground that the petitioner did not satisfy the ingredients of a Primary Agricultural Credit Society as contemplated under the Kerala Co-operative Societies Act. The petitioner challenged this assessment order by filing an appeal (Ext.P2) before the Commissioner of Income Tax (Appeals), which is currently pending. The petitioner has approached the High Court of Kerala by way of a writ petition seeking directions regarding this pending appeal.

What did the High Court hold?

The High Court of Kerala, while acknowledging the pendency of the petitioner's statutory appeal (Ext.P2) before the Appellate Authority, disposed of the writ petition. The Court directed the Appellate Authority to consider and pass orders on the appeal at the earliest. Furthermore, the Court ordered that the respondent shall not take any coercive steps against the petitioner pursuant to the assessment order (Ext.P1) until the disposal of the appeal. The Court did not decide on the merits of the claim for deduction under Section 80P, as the matter was pending before the statutory appellate authority. The principle that can be cited is that a writ petition seeking directions for expeditious disposal of a statutory appeal will be entertained, and interim protection may be granted.

What were the issues?

1. Whether the petitioner, a Primary Agricultural Credit Society, is entitled to claim deduction under Section 80P of the Income Tax Act, 1961, when the Assessing Officer has rejected the claim on the grounds that the petitioner does not satisfy the ingredients of a Primary Agricultural Credit Society as contemplated under the Kerala Co-operative Societies Act, 1969? Assessee's Contention: The petitioner relies on the judgment of the Hon'ble Supreme Court in Mavilayi Service Co-operative Bank Ltd. v. Commissioner of Income Tax; 2021 (1) KLT 485 to challenge the assessment order. Revenue's Contention: The judgment does not record any specific contentions made by the revenue in this writ petition. The Assessing Officer's reasoning for rejecting the deduction under Section 80P is stated as the basis for the assessment order.

Which sections of the Income-tax Act were involved?

Section 80P

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE T.R.RAVI TUE AY, THE 24TH DAY OF JANUARY 2023 / 4TH MAGHA, 1944 WP(C) NO. 2286 OF 2023 PETITIONER: 1 THE OTTAPALAM SERVICE CO-OPERATIVE BANK LTD. REG NO F.1164, 23/650, BUS STAND BUILDING,, MAIN ROAD, OTTAPALAM, PALAKKAD - 679 101, KERALA, INDIA REPRESENTED BY ITS SECRETARY, SMT. LATHA N. AGED 52 YEARS BY ADV ALAN PRIYADARSHI DEV RESPONDENTS: 1 ADDITIONAL /JOINT/DEPUTY/ASSISTANT COMMISSIONER OF INCOME TAX /INCOME TAX OFFICER, NATIONAL E-ASSESSMENT CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, ROOM NO.401, 2ND FLOOR, E-RAMP, JAWAHARLAL NEHRU STADIUM, DELHI-110 003 2 THE COMMISSIONER OF INCOME TAX (APPEALS) NATIONAL FACELESS APPEAL CENTRE, INCOME TAX DEPARTMENT, MINISTRY OF FINANCE, JAWAHARLAL NEHRU STADIUM, DELHI-110 003. SRI. JOSE JOSEPH, STANDING COUNSEL THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 24.01.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

WPC No.2286 of 2023 2 T.R. RAVI, J. ----------------------------------------- W.P.(C.) No.2286 of 2023 ----------------------------------------- Dated this the 24th day of January, 2023 JUDGMENT The petitioner is a Primar

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